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Not going through the roof

Article Abstract:

UK house prices are affected by lower inflation, which means there is less incentive to retain a home as a speculative investment. Property is thus released, which depresses prices. Mortgage debt becomes a problem as house prices drop, and this is especially true if wages drop so mortgages cannot be paid. Mortgage lenders are likely to become more cautious. Homeowners are less likely to move since they have less benefit from upgrading their home as an investment.

Real Estate, Real Estate and Rental and Leasing, Real estate industry

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Survive and thrive in the zero era

Article Abstract:

Inflation is likely to be at low levels in the UK, so debt becomes more of a burden since it is not eroded. Housing ceases to become an investment, and is no longer a source of retirement income. Pension funds will not increase as rapidly in money terms, though they may increase in real terms. Fixed interest debt should be avoided. Investment in companies with high debt levels should be avoided. Long bonds with fixed interest rates are a good investment choice.

Evaluation, Investments

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Inflation: has the dragon been slain?

Article Abstract:

Inflation has been seen as inevitable, but this has not always been the case, and prices fell in some years prior to the second world war. Governments have since sought to maintain full employment, companies have more power to increase prices,and labor unions have more power to raise wages.Labor unions have since weakened, and governments are more commited to reducing inflation. Price deflation has occurred in Japan and could also happen in Europe.

Analysis, Economic aspects, Economic policy

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